Producer Price Index Drops 5.2% in March

Doha, May 27 (QNA) - Qatar's Producer Price Index (PPI) of 102.7 for March 2015 shows a decrease by 5.2% compared to February 2015, and down by 41.4% compared year-on-year to March 2014. Data released Wednesday by the Ministry of Development Planning and Statistics (MDPS) covers mining, electricity, water and manufacturing sectors. The index is is a measure of the average selling prices received by domestic producers for their output. In mining sector (with a weight of 77%), the 5.8% fall is primarily in crude petroleum and natural gas. Manufacturing sector's PPI (with a weight of 21%) shows a fall of 3.2%. Refined petroleum products prices fell 7.7%, basic metal by 3.1%, cement and other non-metallic products by 1.1%, grain mill and other products by 0.2% and dairy products by 0.1%. Beverage prices increased by 0.7% while basic chemicals by 7.5%. The PPI utilities electricity and water (with 2.0% weightage) decreased by 1.7% due to the drop by 1.1% in electricity and water by 2.6%. The overall PPI this March has decreased (year-on year) by 41.4% compared to March 2014. Mining PPI shows a drop by 44.5% mainly due to a similar price decline in crude petroleum and natural gas. Manufacturing declined 29.8% this March compared March 2014. The major groups which explain this price fall are refined petroleum products" by 35.4%, basic chemicals by 28.2%, basic metals by 16.9%, grain mill and other products by 1.3%. Prices of dairy products rose 5.7%, beverages by 2.2%, cement and other non-metallic products" by 4.6%. The PPI for electricity and water shows a decrease of 0.7% due the combined effect of price rise seen in electricity by 0.3%, and a price fall in water by 2.2%. (QNA)